Chapter 4 First choice Higher/Less Second Choice Should/Should not Third Choice Saves/Loses

Break-Even Analysis (CCengage Learning. Not for commercial use. Enter data only in yellow cells. Profitability Analysis Outsourcing Decision Technology Choice Decision \begin{tabular}{r|r|} Total Cost & $220,000.00 \\ \cline { 2 - 2 } Total Revenue & $200,000.00 \\ \cline { 2 - 2 } Net Profit & $20,000.00 \\ \cline { 2 - 2 } Profit or Loss & Loss \\ \hline \end{tabular} \begin{tabular}{|r|r|} \hline Total In-House Production Cost & $490,000.00 \\ Total Outsourced Cost & $420,000.00 \\ \cline { 2 - 2 } Cost difference (In-House - Outsourced) & $70,000.00 \\ \cline { 2 - 2 } Economical Decision & Outsource \\ \hline \end{tabular} for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven quantity: searches Since the demand forecast of 3,400 searches is than the breakeven quantity, STE outsource the work. STE $ by outsourcing